FAO Food Price Index Rises in July 2025 as Meat and Vegetable Oils Push Costs Higher
The FAO Food Price Index (FFPI), which tracks monthly changes in the international prices of a basket of key food commodities, averaged 130.1 points in July 2025. This marked a rise of 2.1 points or 1.6% from June. The increase came despite falling prices for cereals, dairy and sugar, as higher costs for meat and vegetable oils outweighed the declines. Overall, the index was 9.2 points or 7.6% higher than a year earlier, but still 18.8% below the record peak reached in March 2022.
Cereals Slip as Rice and Wheat Weigh Down Index
The FAO Cereal Price Index averaged 106.5 points, down 0.8% from June and 3.8% year-on-year. Barley and maize export prices edged higher, but wheat and sorghum prices fell. The decline was largely attributed to strong seasonal wheat supplies in the northern hemisphere, although lower than average spring wheat conditions in parts of North America and slow farmer selling in Europe and the Black Sea region limited further drops. Rice prices also weakened, with the FAO All Rice Price Index falling 1.8% amid ample export supplies and weak demand.
Vegetable Oils Reach Three-Year High
The FAO Vegetable Oil Price Index rose to 166.8 points, an increase of 7.1% month-on-month and the highest level in three years. Palm oil led the gains, supported by strong global import demand, while soy oil rose on firm expectations of feedstock demand for biofuel production in the Americas. Sunflower oil quotations increased due to tightening supplies in the Black Sea region. By contrast, rapeseed oil prices eased, reflecting new crop arrivals in Europe.
Meat Prices Set New Record
The FAO Meat Price Index reached 127.3 points, up 1.2% from June and 6% higher than a year earlier, setting a new all-time high. Bovine meat prices rose to record levels, with strong import demand from China and the United States outpacing available exports, particularly from Australia and Brazil.
Ovine meat prices climbed for the fourth consecutive month, driven by limited supply from Oceania. Poultry prices increased modestly after Brazil regained its avian influenza-free status, boosting exports. Pig meat prices, however, declined due to abundant supply in the European Union and weaker global demand.
Dairy Sees First Decline in Over a Year
The FAO Dairy Price Index slipped marginally to 155.3 points, down 0.1% from June, marking its first drop since April 2024. Butter and milk powder prices fell, reflecting strong export supply from Oceania and subdued import demand from Asia. In contrast, cheese prices continued to rise, supported by demand from Asian and Near Eastern markets, although growth was capped by lower quotations in Oceania and the United States.
Sugar Declines for Fifth Consecutive Month
The FAO Sugar Price Index averaged 103.3 points, edging down 0.2% from June and 13.5% lower year-on-year. Forecasts of a rebound in production for 2025/26, particularly in India and Thailand, combined with favourable conditions in Brazil, weighed on prices. However, signs of rising import demand limited the overall decline.
